Hot Penny Gold Stocks

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I was thinking of buying some stocks in companies that deal with gold tomorrow! wednesday sept 6.. just looking for some views about gold stocks?? good or bad choice??

Best Answer

I think that gold stocks (and gold itself) will probably outperform the market over the next couple of years. In addition to being a commodity/metal, Gold acts (more or less) as a "neutral currency," staying relatively flat (when inflation is taken into account). Essentially, if you buy gold, you are betting that the US dollar (or whatever currency you invest with) will go down, which sends the price of gold up. Gold is also considered a good hedge against uncertainty. Generally speaking, the more turmoil there is in the world, the more gold will go up, since it is considered a safe haven for money in times of crisis. In addition to investing in individual gold companies, you can invest in a Gold ETF (exchange traded fund). This allows you to invest directly in gold without the high fees and storage problems this usually entails (ETFs trade just like stocks but usually mirror the underlying price of a basket of stocks, an exchange, or a commodity). The one ETF that I know of is traded under the US ticker symbol GLD. It is actually one of my top portfolio holdings at the moment.

Does oil prices going up and down effect value of GOLD in any way ? How does one determine when is the good time to buy stocks of companies who deal in gold and products and when to sell them.

Best Answer

There is very little correlation between the price of oil and the price of gold. Both are driven by supply and demand. Gold stocks prices do correlate to the price of gold, so a good time to buy gold stocks is when you think gold is going higher, and a good time to sell them is when you think gold price will go down. There is a much weaker correlation between the price of oil and the price of oil stocks (oil has doubled in price in the last year or so, but most oil stocks are up only a little).

dollar down? When do they sell their gold stock?

Best Answer

for the right mining company, buying their stock is a way to play the rise in gold, silver, etc. when the cost per ounce from extraction to finished product, which does not usually vary, is much lower than the market price per ounce, the difference between the two is pure profit.

Best Answer

why would you not of picked that as your best answer? Its been 3 dang months?

or do you think that gold will rise again during the summer?

Best Answer

Sell it now.